Bitcoin ETFs Pull In Another $203M as Six-Day Buying Streak Continues

Spot Bitcoin ETFs are once again attracting steady inflows after weeks of selling. SoSoValue data showed that the fund added another $203 million on July 21. 

This has boosted sentiment in the crypto market. BTC price, which had been bouncing around the $58,000 to $62,000 mark, saw gains, now trading at around $66,000.

The turnaround is also very notable because it came after the largest withdrawal period this year. Last month, billions of dollars left Bitcoin funds as investors reacted to economic events.

Bitcoin ETFs continue inflow streak

The latest BTC ETF inflow was the sixth consecutive day of positive flows and continued a recovery that began in mid-July.

Source: SoSoValue; Bitcoin ETF daily inflows

Before Tuesday, the funds had seen $723.3 million over five straight trading sessions to July 20. It was the longest streak of positive flows since May.

Prior to this, the funds suffered a 10-day outflow streak. More than $2.7 billion left the funds in that time as institutional investors reduced exposure. That withdrawal period led to BTC falling below $58,000, which was its lowest point during the selloff. Since then, the trend seems to have changed.

July 20 was the strongest inflow day since the streak began. The funds saw $226.8 million in net inflows. BlackRock’s IBIT accounted for a large share of that demand.

What is driving the return of investors?

The Bitcoin ETF inflow streak didn’t happen in isolation. There have been positive developments over the past week. For example, Trump reached an agreement on an ethics package for the CLARITY Act.

This legislation would help provide clearer rules for digital assets. Many institutional investors have been asking for legislation for years. If passed, the bill could boost optimism across the crypto market.

Also, Russia's State Duma approved a crypto market law that classifies crypto as property and allows regulated trading under the supervision of the country's central bank. The law would take effect on September 1, 2026.

All of this helps to reduce regulatory uncertainty, which influences how investors allocate capital to digital assets.

BTC still faces economic challenges

Bitcoin and the crypto market at large still face some important tests in the weeks ahead, even with the improved fund flows.

The next key event is the Federal Reserve meeting set for the end of July. CME Group's FedWatch Tool shows that markets have assigned a 73% probability that the Fed will leave interest rates unchanged at the meeting.

Source: CME FedWatch Tool

Traders would be paying attention to comments from Fed Chair Kevin Warsh for clues about its possible next move. If it hints at rates staying higher for a longer period, it could limit upward movement for Bitcoin.

Then there is still the matter of the war between the US and Iran. Talks of ending the war seem to be dwindling as military strikes continue. This has limited previous positive runs of BTC. If the war continues to intensify, it could dampen the coin’s recovery.